Warner Bros. Discovery has just jilted Netflix after receiving what it calls a “superior offer” from Paramount.

A surprise twist in the takeover saga results in Netflix refusing to raise its offer on value grounds, paving the way for the hostile bidder to win the day.

In its revised offer, Paramount offered $31 per share for the company, up from $30, a $7bn regulatory termination fee if the merger is not improved, and a “ticking fee” amounting to about $650m in cas...